Pitchbook US template - Robinsons Retail Holdings Inc. · UNAUDITED EARNINGS PRESENTATION. 1 Agenda Results Highlights Store Network Consolidated Results Business Segments Working

20160516

May 2016

1Q2016UNAUDITED EARNINGS

PRESENTATION

1

Agenda

Results Highlights

Store Network

Consolidated Results

Business Segments

Working Capital

Capital Expenditure

Plans and Prospects

2

1Q2016 Unaudited Results Highlights

3

Nationwide Presence

1 Outside of Metro Manila

* Figures as of March 2016

Business segment # of stores

Supermarkets 18

Department stores 7

DIY stores 35

Convenience stores 27

Drug stores 30

Specialty stores 39

Total 156


Supermarkets 55

Department stores 16

DIY stores 69


Drug stores 249

Specialty stores 98

Total 648

Luzon1Mindanao


Supermarkets 10

Department stores 5

DIY stores 15


Drug stores 16

Specialty stores 21

Total 68

Visayas

42%

36%

43%

38%

10%

17%

5%

9%

Metro Manila Luzon Visayas Mindanao

Gross

Floor

Area

Store

Count

Metro ManilaBusiness segment # of stores

Supermarkets 41

Department stores 12

DIY stores 47


Drug stores 83

Specialty stores 130

Total 642

stores 1,514Nationwidewith gross floor area of

967,000 sqm

4

Number of

StoresGross Floor

Area (GFA)(in ‘000 sqm)

GFA

Contribution

by Segment(%)

GFA

Contribution

by Lessor(%)

RLC

Outside RLC

1Q2016 Stores and Gross Floor Area Statistics

Supermarkets

35%

Department

Stores

30%

DIY Stores

15%

Convenience

Stores

5%Drug

Stores

4%

Specialty

Stores

11%

49% 51%RLC

Outside RLC

2014 20151Q2015

1Q2016

888

974

896967

2014 20151Q2015

1Q2016

1,075 1,2361,104 1,241

252 270252 273

1,3271,506

1,356 1,514

5


1 Net sales after intersegment eliminating adjustments

39.2 43.2

13.714.9

8.5

9.94.6

5.57.1

8.17.3

9.3

2014 2015

Supermarkets Department stores DIY stores Convenience stores Drugstores Specialty stores

3.6% 4.1% 3.4%

9.0%

2014 2015 1Q2015 1Q2016

9.711.0

3.03.2

2.2

2.51.3

1.41.9

2.21.7

2.5

1Q2015 1Q2016

SSSG (%)Net Sales1 (₱ bn)

15.1% yoy net sales

growth in 1Q2016:

6.1% from new stores

9.0% from SSSG

80.4

90.9

19.7

22.7

6

Discretionary

Retailing

36%

Net Sales

Breakdown

1Q2016 Contribution Per Segment

EBIT

Breakdown

EBITDA

Breakdown

Supermarkets48.3%

Convenience stores6.1%

Drugstores9.8%

Department stores13.9%

DIY stores10.9%

Specialty stores11.0%

Supermarkets52.9%


DIY stores19.3%


Drugstores10.0%


Supermarkets48.6%


DIY stores16.2%


Drugstores8.0%


7

3,427

3,625

635 696

2014 2015 1Q20151Q2016

5,768 6,376

1,190 1,348

2014 2015 1Q2015 1Q2016

4,487 4,729

790 904

2014 2015 1Q2015 1Q2016

Net Income (₱ mm)EBIT (₱ mm)

Gross Profit1 (₱ mm) EBITDA2 (₱ mm)


Net income

attributable

to equity

holders of

the parent

company

was flattish

in 1Q2016

Net in

com

e a

ttribu

table

to p

are

nt co

mpan

y

1 Gross profit = Net sales – Cost of merchandise sold; 2 EBITDA = Operating income + Depreciation and amortization + Provision for impairment losses; 3 Core net income = Net income – Equity in net earnings of an associate – Interest income – Foreign currency exchange gain (loss)

5.6% 5.2% 4.0% 4.0%

% of Net Sales

7.2% 7.0% 6.0% 5.9%

% of Net Sales

21.7% 21.7% 21.6% 21.2%

% of Net Sales

4.3% 4.0% 3.2% 3.1%

Core net income as a % of Net Sales

17,429 19,749

4,252 4,805

2014 2015 1Q2015 1Q2016

3,561

Core

Net

inco

me

3

4,342

781 785

8

2,579 2,944

628 725

3,966 4,805

1,111 1,301

6,549

7,486

1,721 1,920

13,095

15,235

3,460 3,946

2014 2015 1Q2015 1Q2016

Rental and utilities

Personnel costs and contracted services

Others

Operating Expenses

Adjusted Operating Expenses1 (₱ mm, % of Net Sales)

Operating

expenses as a

% of net sales

declined due to

strong SSSG5.6%3.2%

8.7%

5.7%

3.2%

8.5%

4.9%

3.2%

8.1%

5.3%

3.2%

8.2%

1 Operating expenses excluding provision for impairment losses and depreciation and amortization expenses

16.3%16.8%

17.5% 17.4%

% of Net Sales

9

2,664 3,009

559 655

2014 2015 1Q2015 1Q2016

39,199

43,239

9,689 10,960

2014 2015 1Q2015 1Q2016

7,362 8,203

1,783 2,011

2014 2015 1Q2015 1Q2016

EBITDA (₱ mm)

Supermarket Business Segment

19.0%

18.4%

Net Sales (₱ mm)

18.8%

18.4%

Gross Profit (₱ mm)

7.0%

5.8%

6.8%

6.0%

= % of segment’s net sales

Increase in sales in 1Q2016 largely driven by new

store additions (4.4%) and strong SSSG (8.7%)

10

3.3% 3.3% 3.4%

8.7%

2014 2015 1Q2015 1Q2016


Store CountSSSG (%)

Robust 1Q SSSG

due higher

basket size and

transaction

count

111

124

113

124

2014 2015 1Q2015 1Q2016

11


Robinsons Supermarket partnered with HappyFresh for its online grocery delivery service

Customers can make an order from within a 5km radius of 20 selected Robinsons

Supermarket branches in Metro Manila

12

1,056 1,153

171 171

2014 2015 1Q2015 1Q2016

13,738 14,906

2,985 3,154

2014 2015 1Q2015 1Q2016

3,607 3,926

774 807

2014 2015 1Q2015 1Q2016

EBITDA (₱ mm)

Department Store Business Segment

Net Sales (₱ mm) Gross Profit (₱ mm)

7.7%

5.7%

7.7%

5.4%

Increase in sales in 1Q2016 driven by robust SSSG

25.9% 25.6%

26.3% 26.3%


13

5.1% 5.5%4.8%

7.5%

2014 2015 1Q2015 1Q2016

Department Store Business Segment

Store CountSSSG (%)

Robust SSSG

mainly due

to higher

basket size

42 42 42

40

2014 2015 1Q2015 1Q2016

14

911 945

212 218

2014 2015 1Q2015 1Q2016

8,521

9,872

2,208 2,480

2014 2015 1Q2015 1Q2016

2,641

3,067

692 792

2014 2015 1Q2015 1Q2016

EBITDA (₱ mm)

DIY Store Business Segment

31.0%

Net Sales (₱ mm)

31.1%


10.7%9.6%

Growth in net sales driven by new store sales

contribution (2.5%) and strong SSSG (9.8%)

31.4% 31.9% 9.6% 8.8%


15

7.2%5.0% 4.8%

9.8%

2014 2015 1Q2015 1Q2016

DIY Store Business Segment

Store CountSSSG (%)

Robust SSSG

due to sustained

strong residential

construction

activities

161

166

159

166

2014 2015 1Q2015 1Q2016

16

4,616 5,493

1,256 1,385

2014 2015 1Q2015 1Q2016

1,170 1,544

333 416

433

527

121 131

2014 2015 1Q2015 1Q2016

289 271

59 82

2014 2015 1Q2015 1Q2016

EBITDA (₱ mm)

Convenience Store Business Segment

34.7%

System-wide Sales & Net Sales(₱ mm)

37.7%

Gross Profit & Royalty Income(₱ mm)

6.3%

4.9%


6,711

7,961

1,7962,079

1,603

2,070

454 546

= GP + Royalty Income % of segment’s net sales

Increase in net sales driven by robust SSSG

(7.0%) and new store openings (3.3%)

36.1%

39.4%

4.7% 5.9%

Syst

em

-wid

e s

ale

s

Net

sale

s

17

-2.6%

5.4% 5.0%7.0%

2014 2015 1Q2015 1Q2016

Convenience Store Business Segment

Store CountSSSG (%)

Robust SSSG was

driven by the

strong sales

performance of

ready-to-eat

category

450

519

473

518

2014 2015 1Q2015 1Q2016

18

321

373

87 107

2014 2015 1Q2015 1Q2016

7,061

8,070

1,876 2,229

2014 2015 1Q2015 1Q2016

1,129 1,265

312 362

2014 2015 1Q2015 1Q2016

EBITDA (₱ mm)

Drugstore Business Segment

16.0%

Net Sales (₱ mm)

15.7%


4.5%

4.6%

Growth in sales propelled by the sales

contribution of new stores and

recovery in SSSG

16.6%16.2% 4.6% 4.8%


19

1.0%3.3%

-0.9%

10.7%

2014 2015 1Q2015 1Q2016

SSSG turned around

due to increase in

purchasing power

from wage hike, low

fuel prices and

election spending

Drugstore Business Segment

Store CountSSSG (%)

320

367

330

378

2014 2015 1Q2015 1Q2016

20

533

635

104 118

2014 2015 1Q2015 1Q2016

7,889

10,359

1,917 2,722

2014 2015 1Q2015 1Q2016

2,247

2,761

566 702

2014 2015 1Q2015 1Q2016

EBITDA (₱ mm)

Specialty Store Business Segment

28.5%

Net Sales (₱ mm)

26.7%


6.8%

6.1%

Growth in net sales driven by the double-

digit sales growth of all formats

29.5% 25.8% 5.6% 4.3%


21

6.4%4.9%

3.1%

12.7%

2014 2015 1Q2015 1Q2016

Specialty Store Business Segment

Store CountSSSG (%)

Strong SSSG in

due to robust

SSSG of toys and

appliances

formats

243288

239288

2014 2015 1Q2015 1Q2016

22

6.0 6.9 7.1 5.9

2013 2014 2015 1Q2016

48.5 52.1 54.3 56.0

2013 2014 2015 1Q2016

83.3 82.0 75.9 63.4

83.3 82.0 75.9 63.4

-28.8 -22.9 -14.5 -1.6

2013 2014 2015 1Q2016

Working Capital

Working capital days trend

Negative cash conversion cycle sustained in 1Q2016

Trade receivable days1

Inventory days2

Trade payable days3

Cash conversion cycle4

1 Trade receivable days = Number of days x Trade and other receivables / Net sales; 2 Inventory days = Number of days x Merchandise inventories / Cost

of merchandise sold; 3 Trade payable days = Number of days x Trade and other payables / Cost of merchandise sold, 4 Cash conversion cycle = Trade

receivable days + Inventory days – Trade payable days

23

Capital expenditure breakdown (₱ mm)1

Capital Expenditure

4.8%

% of group’s net sales

1 Capital expenditure includes expenses on leasehold improvements, store and furniture fixtures, office furniture and fixtures, transportation equipment,

building and other equipment and computer equipment

42%42%

13%

13%

11%

10%

15%

14%

3%

4%

15%

18%

2014 2015

Supermarkets Department stores DIY stores Convenience stores Drugstores Specialty stores

3,876

3,144

44%

21%

11%

11%4%10%

1Q2016

732

3.5% 3.2%

24

Robinsons Wallet

RWallet is a pin-based, re-loadable

debit card used for shopping in

Robinsons Retail stores

Powered by Robinsons Bank, this

is a more convenient and secure

alternative to gift certificates

A special edition cash card was

launched for UniLab allowing its

employees to purchase their

rice benefits in any Robinsons

Supermarket branch at any time

25

Plans and Prospects

Organic gross expansion of 200+ new

stores in 2016 with CAPEX of ₱5bn

GP margin increase of 10-20 bps

Same store sales growth of 3-5%

Mergers and acquisitions

26

March 31 December 31

PHP mm 2016 2015

ASSETS

Current Assets

Cash and cash equivalents 7,197 9,757

Short-term investments 7 7

Merchandise inventories 11,011 10,576

Other current assets 3,398 3,462

Total Current Assets 21,613 23,802

Noncurrent assets

Available-for-sale (AFS) financial assets 19,799 19,511

Property and equipment - net 11,441 11,149

Investment in shares of stocks 5,203 5,079

Intangible assets 4,106 4,109

Other noncurrent assets 1,465 1,508

Total Noncurrent Assets 42,014 41,357

Total Assets 63,627 65,160

LIABILITIES AND EQUITY

Current Liabilities

Trade and other payables 12,474 14,796

Current portion of loans payable 2,245 2,845

Other current liabilities 1,136 885

Total Current Liabilities 15,855 18,526

Noncurrent Liabilities

Others 1,158 1,129

Total Noncurrent Liabilities 1,158 1,129

Total Liabilities 17,013 19,654

Equity

Capital stock 1,385 1,385

Additional paid-in capital 27,227 27,227

Equity reserve (1,027) (1,027)

Retained earnings 16,472 15,687

Others 527 252

Total equity attributable to equity holders of Parent Company 44,583 43,524

Non-controlling interest in consolidated subsidiaries 2,030 1,982

Total Equity 46,614 45,505

Total Liabilities and Equity 63,627 65,160

Consolidated Statements of Financial Position (Unaudited)

27

PHP mm 2016 2015

Sales - net of sales discounts and returns 22,696 19,715

Cost of merchandise sold 17,891 15,463

Gross Profit 4,805 4,252

Royalty, rent and other revenues 489 397

Gross profit including other revenue 5,294 4,649

Operating expenses (4,390) (3,859)

Earnings before interest and taxes 904 790

OTHER INCOME (CHARGES)

Interest income 204 199

Foreign currency exchange gain (losses) - net (73) 0

Dividend income 28 28

Equity in net earnings of an associate 26 11

Interest expense (16) (5)

169 233

INCOME BEFORE INCOME TAX 1,073 1,023

Provision for income tax 239 201

NET INCOME 834 822

Net income attributable to:

Equity holders of the Parent Company 785 781

Non-controlling interest in consolidated subsidiaries 49 41

834 822

Earnings Per Share

Basic 0.57 0.56

Weighted 0.57 0.56

Shares Outstanding

End of Period 1,385 1,385

Weighted 1,385 1,385

Three Months Ended March 31

Consolidated Statements of Comprehensive Income (Unaudited)

28

Three Months Ended March 31

PHP mm 2016 2015

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax 1,073 1,023

Adjustments for:

Depreciation and amortization 443 399

Interest expense 16 5

Equity in net earnings of an associate (26) (11)

Dividend income (28) (28)

Interest income (204) (199)

Others 73 (0)

Operating income before working capital changes 1,348 1,189

Working capital changes (2,518) (2,045)

Interest received 157 210

Income tax paid (40) (29)

Net cash flows generated from (used in) operations (1,052) (674)

CASH FLOWS FROM INVESTING ACTIVITIES

AFS investments - net (150) (1,264)

Property and equipment - net (732) (743)

Others (9) (119)

Net cash flows used in investing activities (891) (2,126)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of loans (600) (14)

Interest paid (17) (5)

Net cash flows used in financing activities (617) (19)

Net increase (decrease) in cash and cash equivalents (2,560) (2,819)

Cash and cash equivalents at beginning of year 9,757 9,970

CASH AND CASH EQUIVALENTS AT END OF PERIOD 7,197 7,151

Consolidated Statements of Cash Flows (Unaudited)

Documents

Pitchbook US template - Robinsons Retail Holdings Inc. · UNAUDITED EARNINGS PRESENTATION. 1 Agenda Results Highlights Store Network Consolidated Results Business Segments Working